Which Houston neighborhoods hold most promise for 2014?

It’s been a big, booming year for Houston’s Inner Loop properties, but data analyzed by a real estate company suggest some may have more potential than others.

Realty company Urban Leasing & Realty, with offices in Houston, Denver and Dallas, analyzed retail sales data from Houston’s Inner Loop neighborhoods from January and February and October and November in order to see which neighborhoods have seen more momentum this year. The data came from the Houston Multiple Listing Service during that time period.

West University saw a lot of movement. The median sales price of a house in West U was $603,500 over 25 transactions during January and February, but in October and November, the median sales price was $1.1 million over 28 transactions. The Baker/Sawyer Heights area also saw a lot of new construction activity compared to previous years. Montrose also seems to be drawing more action with new single-family homes being built.

The data also show the changes in price per square foot and in the number of days homes were on the market before selling. The east side of downtown, or EaDo, produced interesting results in both categories for different reasons. Price per square foot shot to $156 from $131 during the time period. The area, however, was one of the only neighborhoods analyzed that did not change much over the time period for time on the market.

While I don’t think Houston’s inner loop neighborhoods will experience quite the appreciation they did in 2013, I think they will continue to appreciate. I also think that the well-informed home buyer can still invest in the market in 2014 and do well over the long run.